Bernitsas Law acted as Greek law counsel to Eurobank Ergasias Services and Holdings S.A. (Eurobank Holdings) in connection with a liability management exercise (LME) consisted of (i) an invitation made by Eurobank Holdings to holders of the €200m Fixed Rate Reset Callable Tier 2 Dated Subordinated Notes due 14 June 2033 issued by Eurobank Holding’s subsidiary, Hellenic Bank Public Company Limited, to exchange their notes for new Euro denominated Tier 2 Dated Subordinated Notes issued by Eurobank Holdings and (ii) the issuance and offering by Eurobank Holdings of €400m Fixed Rate Reset Subordinated Instruments due 2035 (New Notes) to international and domestic institutional investors pursuant to a bookbulding process and the listing thereof on the Euro MTF market of the Luxembourg Stock Exchange.
The total size of the LME amounts to €588,550,000, while investor confidence in Eurobank Holding’s credit standing has generated robust investor demand of €2bn for the issue of the New Notes, representing an oversubscription of 5 times, which enabled Eurobank Holdings to raise €400m at a reduced credit spread of 200 basis points (bps), compared to the initial 225bps indication level. The issue of the New Notes attracted orders from 156 investors, with key participation from the United Kingdom and Ireland (49%) and France (12%).
The purpose of the LME is to optimize the regulatory efficiency of Eurobank Holdings’ capital base and the proceeds from the issue of the New Notes will be used for general financing purposes. The issue of the New Notes also reflects Eurobank Holdings’ group ongoing commitment to the protection of the depositors of Eurobank and further extends its subordinated debt yield curve in the market.
Partners Nikos Papachristopoulos and Maria Nefeli Bernitsa and Counsel Alexia Kefalogianni advised Eurobank Holdings on this transaction.